Hedgeye CEO Keith McCullough is adding MGM Resorts (MGM) to the short side of Investing Ideas. Below is a brief note.
Some of our favorite consumer shorts are making tasty lower-highs this morning on the fake news narrative of a "better than expected jobs report and consumer"... ha
Since TJ told me to wait on it (and I did), I've been waiting for MGM Resorts (MGM) to tag the top-end of my Risk Range ... and it is doing that this morning.
Here's a summary excerpt from Gaming, Lodging and Leisure (GLL) analyst Todd Jordan's recent Institutional Research note:
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A relief rally may be in the cards but the few positives from the quarter will be quickly digested, if they weren’t already anticipated by investors. We suspect Strip demand will show little near term improvement with a potentially disappointing Q3 and Q4 as the lack of group business will become more evident. Lower for longer remains our theme for the Strip and keeps MGM on the Hedgeye Best Idea Short List. |
Short the bounce,
KM